FLASHNEWS:

Cement Exports Surge Amidst Domestic Decline in September

Islamabad: Cement dispatches in September 2024 totaled 3.67 million tons, marking a 5% decrease from the previous year, primarily due to a significant reduction in domestic sales. However, a robust increase in exports partially offset this decline. Domestic cement dispatches fell by 18% annually, while exports saw a substantial 72% rise, reaching 980,000 tons.

According to AKD Securities Limited, the analysis also predicts a narrowing price disparity between cement in northern and southern Pakistan, expected to decrease to around PKR 70 per bag. This change is attributed to falling transportation costs as prices of petroleum, oil, and lubricants decrease, which should help mitigate inter-provincial dumping.

For the fiscal year 2025, local cement demand is forecasted to contract by 2-3%, mainly due to sluggish construction activities. Despite this, exports are poised to exceed the previous year’s figures, supporting overall cement offtakes. Firms like LUCK, FCCL, and MLCF are highlighted as top picks in the sector, with highly leveraged companies also expected to gain attention amidst the ongoing monetary easing.